FINRA suspended Centaurus Financial broker William C. Burks for recommending unsuitably high concentrations in alternative investments, namely non-traded real estate investment trusts (REITs) and business development companies (BDCs). Centaurus Financial is headquartered in Anaheim, California.
The findings state that William Charles Burks (CRD #2944992) unsuitably recommended the risky REIT and BDC products, which were illiquid or had limited liquidity, to customers whose risk tolerance levels were either low or moderate and whose investment objectives included preservation of capital and income generation.
Nonetheless, Burks purportedly recommended customers invest between 51% and 91% of their actual net worth in the alt investments, which exceeded firm concentration limits.
No matter how you slice it, investing 91% of actual net worth in risky products is unsuitable for all but the most speculative of investors. That the risky products were REITs and BDCs just compounded this level of high risk.
Three customer disputes filed against Burks in 2023 and 2024 settled for a combined ~ $800,000, alleging unsuitable recommendations in high-risk illiquid and low-value investments and breach of fiduciary duty.
If you suffered damages after investing with Centaurus Financial broker William Burks or with any investment adviser who unsuitably recommended overconcentration in excessively risky or illiquid products, such as REITs or BDCs, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.